Paying the Piper - Steve Larsen

If you have ever read the fable about the Pied Piper of Hamelin. It is actually a weird story.

He was hired to clear out the rats from the village and he would do so by playing a special song on the pipes.

However, after he wasn’t paid for his services he takes his revenge.

Thus the phrase, “paying the piper” to avoid his backlash and rage.

Earlier this week they posted the new inflation number. Now it’s increased to 9.1%.

It’s kind of interesting that this would surprise any of the governments across the world because it is happening everywhere. What do you expect when you try to shut down the world for 2 years.

If you look at this chart, it represents the M2 money supply.

If you can see during the plandemic, since 2020 the money supply has increased by $6,353 Billion dollars i.e. $6.3Trillion dollars.

That is a 41% increase in all dollars ever created, but in 2 years time.

So now with the 9.1% inflation numbers (which is an arguable figure anyway, real inflation is much higher) we are in essence paying the piper now.

In a couple of weeks the Fed will have another meeting where they will decide what they are going to do with interest rates.

It is planned that the Fed rate will be raised by 0.75% to 1.0% by the end of the month.

So what is your portion due to the “piper” for all the wild money printing?

Here are some possibilities:

Decreased value of stocks?
Increased coupon rates of bonds, pushing current bond values held lower?
Mortgage interest rates increasing thus decreasing borrowing power and pushing up mortgage payments?
Higher mortgage rates decreasing volume of qualified buyers and slowing the real estate market slowing its growth and possibly force a decrease?

So what are you to do with all of this?

With a problem of this scale it’s hard to be insulated from it, but those that position themselves well will recover and make gains a lot more quickly than others.

We hope you are positioned well, and are here to help.

Remember — It’s Your Time…

Steve